TEHRAN (FNA)- Iran and Oman have signed an agreement based on which Iran will export natural gas to Oman for export beyond the neighboring Arab state.
The agreement will open a new gas export route for the Islamic Republic. Under the agreement, Iran will export one billion cubic feet of natural gas to Oman's export terminal to produce liquefied natural gas (LNG), Business Intelligence Middle East reported Friday.
Iran's natural gas will be processed in Oman's Qalhat LNG plant. The plant can produce just under 10 million tons of LNG per year. "Potentially you could have Iranian gas actually being piped to Oman and then liquefied and sold on international markets," said Stuart Lewis, Middle East director at IHS, an energy consultant. The project was in its early stages but there were signs it would move ahead quickly; both sides were looking at finalizing the deal in September, Lewis said. "If you contrast that to all the projects under consideration and haven't come to fruition, this project could be quite significant," Lewis added.
Iran and Oman have been discussing gas cooperation, including development of the Hengam-Bukha field project, for years. Hengam is a joint field west of Bukha in Oman reportedly containing two trillion cubic feet of gas. "Before signing the agreement, the two sides agreed on exporting Iran's gas, developing the Kish gas field, Oman's investment in Iran oil and gas fields, including Hengam fields and developing these fields by the Iranian team and establishing a joint investment company," oil ministry's website Shana reported.